Slide 1: Fourth Quarter and Full-Year 2019 Financial Results
Fourth Quarter and Full-Year 2019 Financial Results February 27, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, capital expenditures, rate base growth, dividend policy, financial outlook, and other statements that are not purely historical, are forward-looking statem
Slide 3: Fourth Quarter Earnings Summary
Fourth Quarter Earnings Summary Q4 Q4 Key SCE EPS Drivers3 2019 2018 Variance Higher revenue4 $ 0.32 - CPUC revenue 0.19 Basic Earnings Per Share (EPS)1 - FERC and other operating revenue 0.13 SCE $ 0.54 $ (4.38) $ 4.92 Higher O&M (0.03) Wildfire-related self-insured retention (0.05) EIX Parent & Ot
Slide 4: Full-Year 2019 Earnings Summary
Full-Year 2019 Earnings Summary Key SCE EPS Drivers3 2019 2018 Variance Test Year 2018 GRC true-up4 $ 0.20 Higher revenue5 0.87 Basic Earnings Per Share (EPS)1 - CPUC revenue 0.51 - 2018 FERC Formula Rate settlement6 0.13 SCE $ 4.15 $ (0.95) $ 5.10 - FERC and other operating revenue 0.23 Higher O&M
Slide 5: SCE Capital Expenditure Forecast
SCE Capital Expenditure Forecast ($ billions) $19.4 - $21.2 billion capital program Distribution for 2020-2023 Transmission • This capital forecast includes: Generation 1 2018 GRC approved CPUC capital spend Wildire mitigation-related spend for 2019-2020 $5.4 $5.4 $5.4 2021 GRC requested CPUC ca
Slide 6: SCE Rate Base Forecast
SCE Rate Base Forecast ($ billions) $41.0 $38.2 $35.9 $33.4 $30.8 $28.5 Range Case 1 CAGR 2018 2019 2020 2021 2022 2023 Range Case 2 $28.5 $30.8 $33.3 $35.1 $37.0 $39.2 6.6% 1. Morongo Transmission holds an option to invest up to $400 million in the West of Devers Transmission Project, or half of th
Slide 7: 2020 EIX Core Earnings Guidance
2020 EIX Core Earnings Guidance 2020 Core Earnings Per Share Guidance – Building from SCE Rate Base on 2019 Weighted Average Shares $0.20 ($0.10) ($0.41) $5.17 • Financial, • Interest related to ($0.39) debt issued for operating and fund contribution: • Operating $4.47 other: expenses and ($0.09) •
Slide 8: 2020 EIX Core Earnings Guidance (cont.)
2020 EIX Core Earnings Guidance (cont.) Key Assumptions 2020 Assumption Additional Notes Total Rate Base $33.4 billion Based on rate base forecast CPUC Rate Base $26.8 billion Return on Equity (ROE) 10.30% 2020 Cost of Capital Final Decision Capital Structure 52% equity 2020 Cost of Capital Final De
Slide 9: EIX Financing Framework – 2020 and Beyond
EIX Financing Framework – 2020 and Beyond ($ millions) Growth Financing Framework $800 • $800 million of 2020 equity issuance to complete 2019 financing plan and support SCE growth capital needs 2019 ATM Carryover: $200 • $400 million of HoldCo debt in 2020 to fund remaining EIX and SCE 2020 needs1
Slide 10: Appendix
Appendix February 27, 2020 Energy for What's Ahead* 9
Slide 11: 2019 Wildfire Mitigation Actions
2019 Wildfire Mitigation Actions Inspections: completed overhead inspections of 100% of T&D assets in HFRA; large volume of findings constrained bandwidth for other programs in 2019; transitioning to more risk-prioritized approach using technology and enhanced aerial inspections Resources: added
Slide 12: Mitigating Catastrophic Wildfire Risk
Mitigating Catastrophic Wildfire Risk 2019 Actuals 2020-22 Wildfire Mitigation Plan Covered Conductor: 372 circuit miles 4,000 additional circuit miles by Jan 1, 2023 Infrastructure completed 2020: 700-1,000 / 2021: 1,400 / 2022: 1,600 Hardening Undergrounding: leverage risk analysis to Approximatel
Slide 13: Updated SCE Wildfire-Related Charges
Updated SCE Wildfire-Related Charges ($ millions) For the year ended December 31, 2019 and December 31, 2018, the income statements and balance sheets include the estimated losses/accrued liabilities (established at the lower end of the reasonably estimated range of expected losses), net of expected
Slide 14: SCE Annual Results of Operations
SCE Annual Results of Operations ($ millions) • Earning activities – revenue authorized by CPUC and FERC to provide reasonable cost recovery and return on investment • Cost-recovery activities – CPUC- and FERC-authorized balancing accounts to recover specific project or program costs, subject to rea
Slide 15: Earnings Per Share Non-GAAP Reconciliations
Earnings Per Share Non-GAAP Reconciliations Reconciliation of EIX Basic Earnings Per Share Guidance to EIX Core Earnings Per Share Guidance EPS Attributable to Edison International 2020 Low Midpoint High SCE $4.84 EIX Parent & Other (0.38) Basic EPS1 $4.32 $4.47 $4.62 Non-Core Items SCE — — — EIX Pa
Slide 16: Earnings Non-GAAP Reconciliations
Earnings Non-GAAP Reconciliations ($ millions) Reconciliation of EIX GAAP Earnings to EIX Core Earnings Q4 Q4 Earnings Attributable to Edison International 2019 2018 2019 2018 SCE $194 ($1,429) $1,409 $(310) EIX Parent & Other (51) (35) (125) (147) Discontinued Operations1 — 34 — 34 Basic Earnings $
Slide 17: EIX Core EPS Non-GAAP Reconciliations
EIX Core EPS Non-GAAP Reconciliations Reconciliation of Edison International Basic Earnings Per Share to Edison International Core Earnings Per Share Earnings Per Share Attributable to Edison International 2019 2018 2017 Basic EPS 3.78 ($1.30) $1.73 Non-Core Items (*) SCE Impairment and other 2018 G
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis of performance. Core earnings are also used when com